Journal Economic, Business, and Accountancy Ventura Volume 13, No.

1, April 2010, page 77-90

Acreditation No. 110/DIKTI/Kep/2009

THE INFLUENCE OF INDIVIDUAL RANK AND WORKING EXPERIENCE

ON PROFESSIONALISM OF INTERNAL AUDITOR
(Study on Internal Auditors of Public Corporation at
Manufacturing SectorListed in The Jakarta
Stock Exchange)

Gunarianto
Fakultas Ekonomi Universitas Widyagama Malang
E-mail : gun_uwg@yahoo.co.id
Jl. Borobudur 12 dan 35, Lowokwaru, Malang 65128, Jawa Timur - Indonesia.

ABSTRACT
One of the causes of economic crisis and failure experienced by a number of Indonesian com-
panies is the corporate governance. If the internal audit can be properly implemented, it will
contribute to improving the process of corporate governance, risk management, and manage-
ment control. This research attempts to obtain empirical evidence and better understanding
concerning: (1) ) the correlation between individual rank with working experience in manu-
facturing sector listed at the JSX; (2) the influence of individual rank and working experience
on the internal auditors’ professionalism of public companies in manufacturing sector listed
at the JSX either partially and simultaneously. The type of research employed in this study is
causal relationship by using the census method for 120 internal auditors of public companies
in manufacturing sector at the JSX. The data this study consist of both primary and second-
ary data. Reliability and validity tests were conducted to examine the questionnaires. SEM
(Structural Equation Modeling) is used to examine the correlation as well as the effect of the
variable. It was found that (1) there is correlation between individual rank and internal audi-
tors’ working experience and between internal auditors’ working experience (R2 =0.52); (2)
individual rank and working experience partially influence the internal auditors’ profession-
alism for with the levels of influence are 6%, and 20% respectively, whilst their simultaneous
effect is 30%.
Key words: Individual Rank, Working Experience, Internal Auditor Professionalism.
INTRODUCTION National Education Department which one
One of the criteria which can be used as the caused by intern auditor less effective func-
base of evaluating effectiveness of corpora- tion.
tion internal audit function is professionalism Corporate crime scandals above belong to
of internal audit for it functions as a support management responsibility and it indicates
for the commissioner, audit committee, man- that management is powerless to keep and
agement, and senior management in forming increase its internal control. One of the case
foundation of corporate governance. Crime emergences is that internal auditor doesn’t
scandals taking place in Indonesia, involves function effectively. Research result con-
both private corporations and the government ducted by KPMG Forensic (2004, pp. 1-31)
(Agoes 2005, p. 35) typical examples of those explained that the cause of that fraud is being
scandals are cases taking place in Kimia Far- lack of or in the absence of internal control
ma, Lippo Bank, Telcom, BNI Bank (fictive which tends to be higher from time to time,
case of L/C), Bapindo (fictive case of L/C), that is 25% in 2002 and 48% in 2004, mean-
Indofarma (unfair financial report), Pertam- ing that an increase of 23% took place. On
ina (kickback commission), Bulog (misuse the contrary, an increase caused by the less
of property fund), Religion Department, and powerful of the absence of intern control re-

77
ISSN 2085-7381 The Influence of Individual........... (Gunarianto)

Table1
Status of Independent Committee Establishment and Forming
of Listed Company Audit Committee per January 10, 2003

Source: BEJ Co. Ltd, 2008.

*) From the total of 331 emitent
**) From the total which have formed

Table 2
Status of Independent Committee Establishment and Forming
of Listed Company Audit Committee per July 21, 2004

Source: BEJ Co. Ltd, 2008.

*) From the total of 335 emitent
**) From the total which have formed

inforcement is 34% in 2002 and 45% in 2004,
meaning that an increase of 11% took place.
The statement is supported by Agoes
statement (2005, p. 3), that all those cases
took place as a result of the weak internal con-
trol, the un-optimal implementation of good
corporate governance, and the many business
units which do not understand the importance
of enterprise risk management. Quoted by the
YPIA (2003, p. 2), Sawyer and Dittenhofer
suggested that “Wherever management goes,
internal auditor must be ready to keep up with
it. But, if management doesn’t know where
to go, internal auditor must be ready to direct
Bapepam regulation, number 41, 2003, Arti-
cle 2 State that emitent or public company is
obliged to have audit committees as required
in the decision enclosure at least on Decem-
ber 31, 2004. The regulation performed as
Bapepam respond to BEJ Co Ltd which has
issued announcement letter on January 10,
2003, numbered: 74/BEJ-PEM/01-2003, as-
signed by head of emitent watch and head of
trade. Anything about status of audit commit-

78
Journal Economic, Business, and Accountancy Ventura
Acreditation No. 110/DIKTI/Kep/2009
tee forming and independent committee es-
tablishment from listed companies are shown
in Table 1.
Table 1, explains that 259 emitent (78%)
have formed audit committee and those which
have met the requirements or the regulations
are 241 emitents, 315 emitents (95%) have
elected independent commissioners and those
having met the requirement or the regulation
are 296 emitents.
Table 2 explains that 310 emitent (93%)
have formed audit committee (an increase
amounting to 15%) (93% - 78%) takes plac-
es, and those having met the requirements on
the regulations are 287 emitent. 331 emitent
(99%) have appointed independent commis-
sioners (an increase of 4% (99% - 95%)) takes
place, and those having met the requirements
or the regulations are 331 emitents.
List of independent commissioner and listed
corporation audit committee is exposed on
Table 3.
Table 3, explains that 232 emitent (70%)
having formed audit committees and having
appointed independent commissioners meet-
ing the appointment. Task and responsibility
of audit committees are: Audit committees
are assigned to provide opinions/ideas to the
commissioners’ board upon report or anything
informed by the management (directors) to
the commissioner board, identifying infor-
mation enquiring commissioners concern,
area implementing other task connecting with
commissioner board’s task like conducting a
study on inspecting implementation conduct-
ed by intern auditor.
Picket (2005, p. 8) explained that intern
auditor activities must include evaluating and
making perfect recommendation to increase
governance process in achieving goals: (1)
promoting ethics and perfect values in orga-
nization; (2) defining effective organization
performance; (3) effectively communicating
risk information and control to the perfect
area in the organization; (4) coordinating ac-
tivities effectively and communicating infor-
mation among management board, extern and
79
Volume 13, No.1, April 2010, page 77-90
intern auditors, and management.
Professionalism is an important element
in the 15 criterions used as the base of evalu-
ating internal auditor functions so that he can
be considered as effective, effective enough
or ineffective. Those criterions are obtained
from research result conducted by the Insti-
tute of Internal Auditors-Research Foundation
(Hiro Tugiman 1996, p. 41). The 15 criterions
are exposed on table 4, as follows.
Professionalism explained by Christian in
1994 was an attitude and a behavior of a man
performing certain profession. A professional
is a man who does not only have specialty and
technical skill, but also has working serious-
ness and precision, achieving other’s satisfac-
tion, dare to take any risk, perseverance and
tough, high integrity, consistent and has a
unity in thought, word, and work (Hiro Tugi-
man 2000, p. 76).
Parson mentioned several important char-
acteristic of professional job (Hiro Tugiman
2000, p. 77). Professional job has character-
istics of: (1) skillfulness based on theory; (2)
having training and educational sites; (3) test-
ing of candidate member’s capabilities; (4)
having a place in the regulations; (5) obedi-
ence to the profession organization; and (6)
service provided is based more on public con-
cern than on personal one.
Sawyer, et.al (2003, pp. 10-11) stated that
internal auditing had to meet several criteri-
ons to be called a highly qualified profession-
al profession. Professional organization must
meet requirements as follows: “(1) service to
the public; (2) long specialized training; (3)
subscription to a code of ethics; (4) member-
ship in association and attendance at meetings;
(5) publication of journals aimed at upgrad-
ing practice; (6) examinations to test entrants’
knowledge; and (7) licensure by the state or
certification by a board.” In addition, Rob-
bins (2005, pp. 189-192) explained that inter-
nal auditor professional behaviors are moti-
vated by their own expectations they wanted
both for he, himself, and for the organization.
Expectancy theory of Vroom 1964 explained
ISSN 2085-7381 The Influence of Individual........... (Gunarianto)

Table 3
List of Independent Commissioners and Listed Corporation Audit Committees

Source: BEJ Co. Ltd, 2008.

Table 4
Criterions of Evaluating Intern Auditor Function Effectivity

Source: The IIA Research Foundation 1996.

that power of a tendency to do something de- search is needed to be conducted to discover

pended on the power of expectancy of output
resulted. In other words, this theory helped
us to explain why so many internal auditors
are not motivated by their jobs, but kept on
doing them minimally did them minimally to
safe themselves. Based on this theory, a re-
whether variables of individual rank and job
experience have an influence upon variable of
internal auditor professionalism, and how big
is the influence both partially and simultane-
ously.
The main problem of this research is

80
Journal Economic, Business, and Accountancy Ventura Volume 13, No.1, April 2010, page 77-90
Acreditation No. 110/DIKTI/Kep/2009

Table 5
Types of Industries (Consumer Products)

Resource: Processed Primery data

formulated as follows: (1) How far is the re-
lationship between individual rank and job
experience of the emitent internal auditor at
manufacturing sector in BEJ; (2) To what ex-
tent is the influence of individual rank and job
experience both partially and simultaneously
upon emitent internal auditor professionalism
at manufacturing sector in BEJ.
The main goals of this research are: (1)
testing how far is the relationship between
individual rank and job experience of emi-
tent internal auditors at manufacture sector in
BEJ; (2) testing to what extent is the influence
of individual rank and job experience both
partially and simultaneously upon emitent in-
ternal auditor professionalism at manufacture
sector in BEJ.
Figure 1
Demographic Data of Emitent Internal Auditor Respondent at
Manufacturing Sector in BEJ in Education
RESEARCH METHOD
Observation unit of this research is emitent at
manufacturing sector in BEJ. Based on JSX
fact book, 2008, it was founded that therer
were 331 emitents in BEJ per December 31,
2008. BEJ Co. Ltd. has classified its emitents
into 19 types of industries. The 19 types of
industries are: (1) Agriculture, (2) Mining, (3)
Basic Industry and Chemicals, (4) Miscella-
neous Industry, (5) Consumer Goods Indus-
try, (6) Property, Real Estate and Building
Construction, (7) Infrastructure, Utilities and
Transportation, (8) Finance, dan (9) Trade,
Service and Investment.
Emitents working at manufacturing sec-
tors consist of basic industries and chemicals,
miscellaneous industry, and consumer goods
industry. While those working in non manu-

81
ISSN 2085-7381 The Influence of Individual........... (Gunarianto)

Figure 2
Demographic Data of Emitent Internal Auditor Respondents at
Manufacturing Sector in BEJ in Scientific Field

Figure 3
Demographic Data of Emitent Internal Auditor Respondents at manufacturing sector
in BEJ in Respondent position in Internal Auditor Team.

facturing sectors consist of agriculture, prop- non manufacturing sectors.

erty, real estate and building constructions,
infrastructures, utilities and transportation
finance and trade, service and investment.
Manufacturing is proses of changing raw ma-
terials into goods to be used, applied, or con-
sumed by human. Quantitatively, there were
331 emitents in BEJ per December 31, 2008,
which were classified into 19 types of indus-
tries consisting of manufacturing sectors and
This research is focused at BEJ emitents
working on manufacturing sector for it is dis-
covered that emitents working on manufac-
turing sector provide sufficient contribution
to BEJ activities both from the number of
emitents, listed stocks, and fund being capi-
talized, And, it is intended to test consistency
of research result conducted by Yohannes,
et.al (2002) and evi and Dwi (2003). Research

82
Journal Economic, Business, and Accountancy Ventura Volume 13, No.1, April 2010, page 77-90
Acreditation No. 110/DIKTI/Kep/2009

respondents are internal auditors and heads of ied is exposed in Figure 2.

companies individually of emitents working Figure 1 explains that most respondent
at manufacturing sectors in BEJ as analysis taken are accounting department graduate
unit. of S1 grade or management department of
Sample coverage used in this research is the same grade which are amounting to 104
120 to 159 emitents at manufacturing sectors, persons or 86,7%. The rest are post gradu-
caused by the fact that the number of emitents ate which are amounting to 10 persons or
working in this sector is relatively small and 8,3% and university graduate coming from
the existing number has met the minimum non accounting or management department
sample requirement to be used in multivariat are amounting to 6 persons or 5%. From the
research. Research respondents are members background of respondents’ education ex-
of internal auditor team and company heads posed in figure 2, it is discovered that there
at manufacturing sector emitents in BEJ. are 100 persons or 83,3% having accounting
Method to analyse data used in this re- study background, 20 persons or 16,7 % hav-
search, which is in accordance with the goal ing non accounting study background ( Vari-
ous Scientific disciplines ).
and the hypotheses proceeded before, is LIS-
REL Program which analysis technique which Respondent position in internal Auditor
is suitable is multivariate statistic analysis Team
technique. Statistic method used is Analysis Respondent demographic data of respondent
of Structural Equation Modelling (SEM). positions in internal auditor team is exposed
in Figure 3
RESULTS Figure 3 explains that most respondent
positions, 115 persons or 95,8 % ,perform as
Respondent Description Statistic
managers or leaders in the internal auditor
Respondent demographic data, taken from
team.
selected samples and can be described as fol-
There are 4 respondents or 3,3% perform
lows:
as supervisors in the internal auditor team
Education and, only one respondents or 0,8 % performs
Demographic data of internal auditor respon- as senior in the internal auditor team, having
dents of formal education obtained is exposed the number of value mean of 4,95 and devia-
in Figure 1, together with scientific field stud- tion standard of 0,25.
Figure 4
Demographic Data of emitent Internal Auditor Respondents at Manufacturing Sector
in BEJ in the number of training ever taken.

83
ISSN 2085-7381
Figure 5
CALCULATION RESULT CONDUCTED USING LISREL PROGRAM IS 8,30
The Number of Training ever taken
Demographic data internal auditor respondent
about the total training ever taken are exposed
in Figure 4.
Figure 4
Demographic Data of emitent Internal Audi-
tor Respondents at Manufacturing Sector in
BEJ in the number of training ever taken.
Figure 4 explains that the number of
respondent training that had been taken up to
more than 21 times are followed by 18 per-
sons or 15 %. Respondent training that had
been taken amounting to 16 – 20 times are
followed by 13 persons or 10,8%; the num-
ber of respondent training ever taken amount-
ing to 7-15 times are 30 persons; the number
of respondent raining ever taken amount-
ing to 1-6 times are followed by 57 persons;
and the rest of them, 2 respondent or 1,7 %
have never taken any internal audit training
and management training. Mean value is 2,
90 and deviation standard is 12. It indicates
that average respondents have taken inter-
nal audit training and management training
amounting to 12 times. And the variation is
relatively low because of mean value is big-
ger than its deviation standard. Range value
84
The Influence of Individual........... (Gunarianto)
of 1-5 with a median of 3 explains that the
number of respondent training ever taken is
minimally once and maximally 21 times with
the number of respondents ever taken training
amounting to 1-15 times is 50%.
The first hypothesis is the existing cor-
relation between individual rank and emitent
internal auditor job experience at manufac-
turing sector in BEJ. First hypothesis testing
using SEM is conducted to examine relation
between Individual rank ( 1) and job expe-
rience ( 2) of emitent internal auditors at
manufacturing sector in BEJ. Calculation re-
sult conducted using LISREL program is 8,30
and can be seen in Figure 5.
Figure 5 : Test result of correlations be-
tween variables of rank exsogent and variables
of job experience of emitent internal auditors
of manufacturing sector in BEJ correlation
test result among exsogent variables is coef-
ficient correlations between variables of in-
dividual rank ( 1) and variables of job ex-
perience ( 2) is 0,69. Correlation coefficient
among exsogent variables indicates that both
of them have positive relationship. The posi-
tive range at correlation coefficient indicates
that the increase taking place at one exsogent
Journal Economic, Business, and Accountancy Ventura
Acreditation No. 110/DIKTI/Kep/2009
variables correlationally related with the in-
crease at another variables. It can be stated in
detail that if individual rank ( 1) increases,
job experience of emitent internal auditor at
manufacturing sector in BEJ also increases.
Based on the measurement of cor-
relation coefficient and the criterion of the
closeness of that relationship, the relationship
closeness among exsogent variables can be
explained that correlations between individual
rank ( 1) and job Experience ( 2) of intern
auditors is moderately high correlation.
Second hypothesis of this result is individual
rank and job experience both partially and
simultaneously significantly influences pro-
fessionalism of internal auditors. The second
hypothesis test using SEM is conducted to
test influence between individual rank ( 1)
and job experience ( 2), both partially and
simultaneously upon emitent internal auditor
professionalism emitent internal auditor ( 1)
at manufacturing sector in BEJ. Hypothesis
grading testing are conducted as follows:
Figure 6
Test Result Of The Influence Exogent Variable Upon Indogent Variables
85
Volume 13, No.1, April 2010, page 77-90
1. Testing the influence of individual rank
upon emitent internal auditor profession-
alism at manufacturing sector in BEJ.
2. Testing the influence of job experience
upon emitent internal auditors profes-
sionalism at manufacturing sector in BEJ;
and
3. Testing the influence of individual rank
and job experience simultaneously upon
emitent internal auditor professionalism
at manufacturing sector in BEJ.
Calculation result, aided by LISREL pro-
gram can be identified in figure 6 as follows :
Figure 6 Test result of the influence exo-
gent variable upon indogent variables. From
the calculation result, obtained by means of
LISREL program a discovery is obtained like
the one identified in figure 6. The direct influ-
ence of individual Rank upon intern auditors
professionalism is (0,25x 0,25x100%) = 6%.
This explains that the direct influence of indi-
vidual rank consisting of age, education level,
the number of training, position in internal
ISSN 2085-7381
audit team. Indicator and indicator of person-
ality upon internal auditor professionalism is
positive (6%). But, the influences of other un-
tested variables in this research are 94 % and
it can be influenced by ability, values,
attitudes, and emotion of internal auditors.
Following is description of that statement:
Influence of individual rank upon emitent
internal auditor professionalism at manufac-
turing sector in BEJ is positive, meaning that
better quality of individual rank can deter-
mine successfulness in creating intern auditor
professionalism in their job. This can be ex-
plained by individual rank factors consisting
of age educational level, the number of train-
ing taken, and internal auditor personality.
Influence of individual rank upon pro-
fessionalism of enterprise internal auditor is
6 %, meaning that factors of individual rank
consisting of age, educational level, the num-
ber of training, position in internal audit team,
and personality have a direct influence upon
internal auditor professionalism amounting to
6 %, while the rest 94% is influenced by other
factors, excluding the indicators researched;
ability, values, attitudes, and emotion. This
is in accordance with statement of Kreitner
and Kinicki (2001) which explained that in-
dividual rank which was able to influence
labor attitudes in perceptions, personal deci-
sion making, learning and motivation were
biographical characteristics, ability, values,
attitudes, personality, and emotions.
From the calculation result by means of
LISREL program it is also obtained result
indicated at figure 6. Direct influence of job
experience variable upon internal auditor
professionalism variable is (0,45 x 0,45 x
100%)= 20%. This means that the influence
of job experience variable consisting of indi-
cators of working time before in the internal
auditor, working time in internal auditor, and
indicators of the number of internal auditor
task upon internal auditor professionalism is
positive (20%). While the influence of other
untested variables in this research is 80%,
consisting of organizational commitment and
86
The Influence of Individual........... (Gunarianto)
personality of internal auditor. Following is
the description of that statement:
Influence of job experience upon inter-
nal auditor professionalism is positive. This
means that, job experience consisting of
working time before in internal auditor, work-
ing time in internal auditor, and the number
of task taken as internal audit can push the
formation and development of an internal au-
ditor professionalism in performing his task.
Influence of job experience upon en-
terprise internal auditor professionalism is
20%. This means that, job experience factor
consisting of working time before in internal
auditor, working time in internal audit, and
the number of internal audit accepted have a
direct influence upon internal auditor profes-
sionalism amounting to 20%, while the rest
80% is influence by other factors excluding
the variable researched. Among them are
organizational commitment and personal-
ity. This means that, it is in accordance with
the statement of Kreitner and Kinicki (2001)
which explained that all individual behaviors
and attitudes are formed by personality and
experience.
DESCRIPTION
The first hypothesis stating that there is a cor-
relation between individual rank and emitent
internal auditor job experience at manufac-
turing sector in BEJ has been proved empiri-
cally. This research result meets the statement
of the Institute of Chartered Accountants in
Australia (ICAA 1994) and YPIA (1995-
2003) stating that: (1) The coverage and pur-
pose of internal audit is so wide depending on
the measurement and structure, together with
management request, and; (2) Internal auditor
members taking training and education have
individual rank, job experience are coming
from various scale enterprise.
Individual rank increase can increase
emitent internal auditor job experience at
manufacturing factor in BEJ indicated
by correlation coefficient figure of 0,69. This
proves that: (1) The more aged the internal
auditor is can add his job experience; (2) The
Journal Economic, Business, and Accountancy Ventura
Acreditation No. 110/DIKTI/Kep/2009
higher educational level the internal auditor
has can add his job experience; (3) The more
training the internal auditor takes can add his
job experience; (4) the higher position the in-
ternal auditor has in the team can add his job
experience; and (5) The better personality the
internal auditor has can add his job experi-
ence. In other words, the length of working
time in internal auditor and before in internal
auditor, together with the number of task in
internal auditor have a relation with the more
age the internal auditor has, the higher level of
education the internal auditor has, the number
of training the internal audit has, the higher
position the internal auditor has in the team
and the good personality the internal auditor
has.
Explanation of the biggest variables of in-
dividual rank and job experience is explained
by indicators of the number of training taken
by the internal auditor amounting to 30% and
working time in internal auditor is 38%. This
explains that: (1) The more training partici-
pated by the internal auditor, the more job ex-
perience in internal audit he has; (2) The more
training participated by emitent internal audi-
tor, the more task of internal audit being well
completed.
Result of the second hypothesis test con-
ducted empirically can also discover a state-
ment that individual rank factor has been
proved to be able to influence internal audi-
tor professionalism in each of his job, though
his contribution is relatively small, that is
6%. This research result supports arguments
proceeded by Robbin (2005) stating that age,
marital status, and the many burdens one has
an influence on job satisfaction. Satisfaction
tend to increase continually for the profes-
sionals as the more aged the are. Therefore,
the older the internal auditor will increase the
internal auditor professionalism or in other
words internal auditor professionalism is in-
fluenced by his age.
Explanation about the biggest variable of
the individual rank and job experience vari-
ables is explained by the many (the number)
87
Volume 13, No.1, April 2010, page 77-90
of training taken which is amounting to 30%
and the length of working time the internal
auditor has, that is 38%, this explains that: (1)
the more training participated by the internal
auditor, the more working experience he has;
(2) the more training the emitent internal au-
ditor has, the more internal audit task being
well competed.
The result of the second hypothesis test
conducted empirically can also discover a
statement that individual rank factor has been
proved to be able to influence internal audi-
tor professionalism in each of his job, though
is contribution is relatively small, that is 6%.
This research result supports arguments pro-
ceeded by Robbin (2005) stating that age,
marital status, and the burdens have influ-
ence on job satisfaction. Satisfaction tends to
increase continually for the professionals as
the more aged they are. Therefore, the older
the internal auditor the more it increases the
internal auditor’s professionalism. In other
words, internal auditor’s professionalism is
influenced by his educational level. Further-
more, this research result also supports Rat-
liff’s arguments (1996) and YPIA. Ratliff
explained that professional service provid-
ing must be results of study process, train-
ing, experience and continued professional
education of someone. YPIA as a professional
training institute creating world leading inter-
nal auditors, the more professional they are
in working or in other words internal auditor
professionalism is influenced by the number
of training participated.
Other research discoveries meet the ar-
guments of YPIA (2003) and Agoes (2004).
Effective IAD will provide added value to
the enterprise or organization, implement
its function independently and have pushing
ability to create risk management, internal
control and good corporate governance in en-
terprise area or in the organization. One thing
to be considered to make a corporation have
effective IAD is to have professional and ca-
pable people who can behave objectively and
have high integrity and loyalty. Therefore,
ISSN 2085-7381
the higher position internal auditor has in his
internal audit team, the higher working pro-
fessionalism he has or in other words, pro-
fessionalism is influenced by internal auditor
position in his internal audit.
This research also meets arguments of
Allport (1937), Buss (1989), and Soekardi
Hoesodo (2002). Eternal characteristics rep-
resenting someone’s attitudes are called per-
sonal characteristics. Personality is formed
from factors of descendant, environment, and
situation functioning as moderating factor,
internal auditor personality can be perceived
from how he communicates, and effective
communication is needed by internal auditor
almost in all audit steps. Therefore, the better
personality internal auditor has the more pro-
fessionalism increase he acquires or in other
words, internal auditor’s professionalism is
influenced by his personality.
The result of the second hypothesis test
also supports previous argument and research
in which job experience variable can influ-
ence internal auditor professionalism in each
of his job with 20% contribution. Result of
this research explains that professional audi-
tor must have sufficient experience about his
tasks and responsibilities. Internal auditor ex-
perience will be a good consideration in de-
cision making in time of performing his job.
Internal auditor experience can determine
professionalism, task performance, commit-
ment toward organization, and internal audi-
tor quality through knowledge obtained from
experience in performing audit.
Result of the research also supports
statements of Colbert (1989), Ketchen and
Strawser (1998), Libby and Frederik (1990),
Robbin (2005), and result of the previous re-
search; Wood et.al (1989), Kalbers and Foga-
rty (1995), Hiro Tugiman (2000), Yohanes
et.al (2002), and Ida Suraida (2003) explain-
ing that the more job experience internal au-
ditor has, the more professionalism increase
he acquires in performing his job or in other
word internal auditor professionalism is influ-
enced by his job experience.
88
The Influence of Individual........... (Gunarianto)
CONCLUSION
Individual rank and job experience have mu-
tual relationship with positive correlation co-
efficient. The individual rank and internal au-
ditor job experience has positive relationship
and moderately high correlation. Individual
rank and job experience influence both par-
tially and simultaneously upon emitent inter-
nal auditor professionalism at manufacturing
sector in BEJ amounting to 6%, while influ-
ence of other untested variable is 94%. Those
variables are variables of ability, values,
attitudes, and internal auditor emotions. Par-
tially, job experience has a positive influence
on emitent internal auditor professionalism
at manufacturing sector in BEJ amounting to
20%. While influence of other untested vari-
ables is 80%. Those variables are variables
of organizational commitment and internal
auditor personality. Simultaneously, influ-
ence of individual rank and job experience
on emitent internal auditor professionalism at
manufacturing sector in BEJ is positive and
it is amounting to 30%. While other untested
variables are amounting to 70%, of which it is
the organizational commitment variable. This
means that simultaneously, if individual rank
and job experience increase, internal auditor
professionalism also increases.
All of the five indicators used to explain/
to measure individual rank variables have
positive coefficient. In fact, the biggest coef-
ficient is the indicator of the number of train-
ing, while the smallest one is indicator of
personality. Three indicators used to explain/
to measure job experience variables have
positive coefficient. And, the biggest coeffi-
cient is indicator of working time in internal
auditor, while the smallest one is indicator
of the number of internal audit task. Further,
for indicator of internal auditor professional-
ism, indicator of continued profession educa-
tion performs the biggest positive coefficient,
while the smallest one is indicator of profes-
sional social obedience.
Journal Economic, Business, and Accountancy Ventura
Acreditation No. 110/DIKTI/Kep/2009
REFERENCES
Afrizal 1999, “Several Factors Influencing
Accounting Method Choice and Manu-
facturing Corporation Profit Report. Di-
sertation”, Bandung, Postgraduate Pro-
gram of Unpad (unpublished)
Agoes, Sukrisno, 2004, “Auditing (Accoun-
tant Audit) by Office of Accountant
Public”, Third Edition. Volume II. Ja-
karta, LP-FEUI.
_______. 2005, Role of Inernal Audit Depar-
tement, Enterprise Risk Management,
and Good Corporate Governance on
the Prevention of Fraud and Its Impli-
cations on Quality Increase of Univer-
sity Graduates in Indonesia. Fixed Pro-
fessor Inaugural Speech in Accounting
Science. Accounting Faculty of Taruma
Nagara University. Jakarta: Salemba
Empat Publisher.
Applegate, B. Dennis, Bergman G. Lawrence,
and Didis K Stepen, 1997, ”Measuring
Success Performance”, Journal The In-
stitute of Internal Auditors, April, Vol.
XIV, No.1: 62-67.
Arens, Alvin A., Randal J Elder, and Mark S.
Beasly, 2006, Auditing and Assurance
Service, An Integrated Approach, Elev-
enth Edition. New Jersey: Prentice Hall,
Englewood Cliffs.
Arrunada, B 2000, Audit Quality: Attribut,
Private Safeguards and The Role of
Regulation. The European Accounting
Review. Vol. 9. No. 2: 205-224.
Office of Capital Market Watch, Finance De-
partement of The Indonesian Republic,
1995. Indonesian Capital Market Blue
Print 1996-2000 Jakarta.
_______. “& Finance Departement of the In-
donesian Republic”, Indonesian Capital
Market Blue Print 2000-2004. Jakarta.
_______. 2003, “Management Responsibil-
ity Upon Financial Statement Letter of
Decision”, Numbered 40. Jakarta, De-
cember 22 nd.
_______. 2003, Establishment and Guidance
of Audit Committee Working Imple-
89
Volume 13, No.1, April 2010, page 77-90
mentation Letter of Decision Numbered
41 Jakarta. December 22 nd.
Birkett, B, Barbera Maria, Leithhead Barry,
Lower Marian, and Roebuck Peter,
1997, Global Competency Frame Work
For Internal Auditing Project. Third
Draft Report, The Institute of Internal
Auditors. Oktober:32-35.
Certification Board – QIA 2005, “Total Reca-
pitulation of Corporations/ BUMN In-
stances, BUMD, BUMS, & other Insti-
tutions Having Aquired QIA Certificate
Positions up to December 8 th, 2005”.
Jakarta. December 19th
Hiro Tugiman, 1996, Audit Internal Introduc-
tion. Yogyakarta, Kanisius Publisher
________. 2000, Influence of Internal Audi-
tor Role and its Supporting Factors on/
Upon the Increase of Internal Control
and Company Performance. Deserta-
tion. Bandung : Postgraduate Program
(Unpublished).
________. 2004, Challence & Prospect of
Auditor Internal Profession in Indone-
sia. Jakarta. February 14 th; 1-34
________. 2004, “Bad Organization Internal
Control is The Main Cause of Indone-
sian’s Being One of the Most Corrupt
Country in the Word”, Professor Inau-
gural Speech in Accounting Science
of Economic Faculty of Widyatama
University. Bandung. December 11th :
1-22
Ida Suraida, 2003, “Influences of Ethic, Com-
petencies, Experience, Audit Risk and
Auditor Professional Skepticism About
Accurateness of Public Accountant’s
opinion Providence (A Survay on Pub-
lic Accountants in Indonesia).” Deserta-
tion. Bandung : Postgraduate Program
of Unpad (Unpublished).
IIA-Indonesia Chapter, “FKSPI BUMN/
BUMD, YPIA, DS-QIA, and PAII,
2003, Recommendation on Audit Inter-
nal Role In Increasing Corporate Gov-
ernance at Enterprises in Indonesia. Po-
sition Paper # 1”, Yogyakarta. July 29th
ISSN 2085-7381
. July : 1-5.
Locke, E.A 1976, The Nature and Causes of
Job Satisfaction. Dalam M.D. Dunnete.
Handbook of Industrial and Organiza-
tional Psychologi. Chicago: Rand Mc-
Nally.
Pickett, KH Spencer, 2005, The Essential
Handbook of Internal Auditing. John
Wiley & Sons Ltd.
BEJ Co.Ltd 2007, JSX Statistic 2007. Jakar-
ta.
_______. 2008, JSX Fact Book 2008. Jakar-
ta.
_______. 2008, “Appointment of Commis-
90
The Influence of Individual........... (Gunarianto)
sioner Independent and Establishment
of Audit Committee”, Jakarta, January
10 th .
_______. 2008, Jakarta Stock Exchange
Monthly Statistics. Jakarta. August.
Volume 14 No. 8.
Sawyer, Lawrence B., Mortimer A. Ditten-
hofer, and James H. Scheiner, 2003,
Sawyer’s Internal Auditing, The Prac-
tice of Modern Internal Auditing. Fifth
Edition. Florida: The Institute of Inter-
nal Auditors. Altamonte Springs.
Vroom, V.H 1964, Work and Motivation. New
York: John Wiley.